Google revealed their Ice Cream Sandwich plans at Google I/O recently so it makes sense that one of the first devices to launch with this OS will be their pure Google Nexus device. BGR's sources indicate these may be the specifications of this device:
We don't know the screen size, but the leaked rumored photos show it being in the 4" plus range. The LTE radio indicates Verizon is a likely target, but AT&T/T-Mobile will be getting LTE too so maybe it will support these carriers. I think 5 megapixel cameras are just fine for smartphone as long as the optics and software are done right so we get decent photos. Most WP7 5 megapixel cameras suck, but Nokia has shown you can have great 5 megapixel shooters so it can be done.
Chris Zeigler at This is my Next also seems pretty excited about this Nexus device.